Go First cancels flights till May 19, NCLT admits the airline's insolvency plea

Updated : May 10, 2023 12:54
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Editorji News Desk

Amid its financial troubles, Go First has cancelled all flights until 19th of May. In a tweet, the airline says that flights have been cancelled due to 'operational reasons'. The airline also said that a full refund would be issued. 

Meanwhile, The National Company Law Tribunal (NCLT) on Wednesday admitted Go First's plea to initiate the voluntary insolvency resolution process.

A two-member bench appointed Abhliash Lal from Alvarez & Marsalas as interim resolution professional (IRP) to run the debt-ridden company.

The firm Alvarez & Marsal is a global professional service that works in turnaround management and performance improvement of large, high-profile businesses.

It has also put the company under protection of moratorium and directed the suspended board of directors to assist the IRP to run the company during insolvency proceedings.

Besides, NCLT also ordered to keep the company as a going concern and ensure that no employee are retrenched.

Go First, which has been flying for more than 17 years, stopped flights from May 3 amid financial crunch caused by grounding of more than half of its fleet due to non-availability of Pratt & Whitney engines.

The airline moved the NCLT earlier this month to initiate the corporate insolvency resolution process under the Insolvency and Bankruptcy Code (IBC).

 

Go First

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